Wall Street analyst Jim Boyle at Gilford Securities increased his price target for Arbitron to $39 after the company announced its early renewal signing of Clear Channel Radio. The stock nearly got there on Thursday, hitting a 52-week high of $38.02 in the morning before slipping back. The stock closed at $37.20, up $5.90 for the day.
“To renew all of CCMO [CC Media Holdings, the parent of Clear Channel] for six years and $538 million much earlier than expected is a X-Mas gift to investors,” Boyle wrote in a note to clients.
The analyst noted that the guidance which Arbitron gave for 2011, for growth of 6-8%, beat the street expectation of 6-8%. With revenue and earnings per share estimates expected to rise, Boyle moved his price target from $36 to $39.